Interim Results
June 30 2003 - 7:50AM
UK Regulatory
RNS Number:9393M
Lombard Medical PLC
30 June 2003
30 June 2003
Lombard Medical plc
Unaudited interim results for the period
from 1 October 2002 to 31 March 2003
Lombard Medical plc
Unaudited Profit & Loss
for the period from 1 October 2002 to 31 March 2003
six months six months
ended ended year to
31 Mar 2003 31 Mar 2002 30 Sep 2002
notes #'000 #'000 #'000
Turnover 143 241 359
Cost of sales (41) (39) (131)
Gross profit 102 202 228
Development and (2,151) (1,979) (4,240)
administrative expenses
Operating loss before (2,049) (1,777) (4,012)
amortisation of
goodwill
Amortisation and - (6,116) (25,092)
impairment of goodwill
Operating loss (2,049) (7,893) (29,104)
Interest net (224) (72) (87)
Amounts written off - - (250)
investments
Loss on ordinary (2,273) (7,965) (29,441)
activities before
taxation
Taxation on loss on - - 238
ordinary activities
Loss for the financial (2,273) (7,965) (29,203)
period
Basic loss per ordinary 3 (4.2) (14.7) (54.0)
share
Lombard Medical plc
Unaudited Balance Sheet
as at 31 March 2003
31 Mar 2003 31 Mar 2002 30 Sep 2002
notes #'000 #'000 #'000
Fixed assets
Intangible assets 63 19,047 67
Tangible assets 553 591 611
Investments 4,263 6,408 4,263
4,879 26,046 4,941
Current assets
Stocks 95 124 102
Debtors 120 174 250
Cash at bank and in 190 1,002 1,420
hand
Restricted deposits 4 1,400 1,400 1,419
relating to bank loan
1,805 2,700 3,191
Creditors: amounts (5,371) (1,109) (1,244)
falling due within one
year
Net current (liabilities) (3,566) 1,591 1,947
/assets
Creditors: amounts
falling due after more
than one year
Loans - (3,342) (3,342)
8% unsecured convertible 5 (2,421) - (2,385)
redeemable loan notes
2007
Net (liabilities)/ (1,108) 24,295 1,161
assets
Called up share 5,410 5,406 5,406
capital
Share premium 31,145 31,146 31,145
Other reserve 1,469 1,469 1,469
Contingent shares to be 900 2,795 900
issued
Profit and loss (40,032) (16,521) (37,759)
account
Equity shareholders' (1,108) 24,295 1,161
funds
Lombard Medical plc
Cash Flow Statement
for the period from 1 October 2002 to 31 March 2003
six months six months
ended ended year to
31 Mar 2003 31 Mar 2002 30 Sep 2002
notes #'000 #'000 #'000
Net cash outflow from 6 (1,737) (2,097) (4,054)
operating activities
Return on investments and
servicing of finance
Interest received - - 66
Interest paid (143) (72) (150)
Issue costs paid - - (118)
Net cash (143) (72) (202)
outflows from
returns on
investments and
servicing of
finance
Taxation received - - 238
Capital expenditure and
financial investment
Purchase of tangible (54) (148) (218)
fixed assets
Increase in restricted - (1,400) (1,400)
cash deposits
Net cash outflow from (54) (1,548) (1,618)
capital expenditure and
financial investments
Acquisitions and
disposals
Purchase of subsidiary - (84) (84)
undertakings
Net cash outflows from - (84) (84)
acquisitions and
disposals
Net cash outflow before (1,934) (3,801) (5,720)
financing
Financing:
Issue of ordinary 4 - -
shares
Issue of loan notes - - 2,500
2007
Bank loan 750 - -
advanced
Repayment of - - (158)
loans
Repayment of loan notes (50) (72) (75)
2006
Repayment of lease - - (2)
finance
Net cash inflow/(outflow) 704 (72) 2,265
from financing
Decrease in cash in the (1,230) (3,873) (3,455)
period
Notes to the unaudited interim financial information
1. General
The interim results are for the period from 1 October 2002 to 31 March
2003, areunaudited and do not constitute accounts within the meaning of
section 240 of the Companies Act 1985. The interim results will be made
available, upon request, from the Company's head office at 67 Milton Park,
Abingdon, Oxfordshire OX14 4RX or from the Company's website at
www.lombardmedical.co.uk.
The results for the period are all attributable to continuing operations.
2. Basis of preparing the financial statements - going concern assumption
The financial statements have been prepared on the going concern basis,
which assumes that the Group will continue in operational existence for the
foreseeable future.
Forecasts have been prepared taking into account the requirements to
complete product development and achieve commercial sales. Bank and loan
facilities held at 31 March 2003 were fully utilised and insufficient to
continue funding the forecast trading activities of the Group for a further
twelve months.
Further new funds amounting to approximately #2.5m, arrangement for the
continuance of the existing bank facility of #1m until 30 January 2004, the
exchange of the Loan Notes 2007 into equity and the option to defer
repayment of a loan of #1.94m to 28 February 2004 have been provided as a
result of the acquisition of the Company by Advanced Medical Technologies
plc ('AMT'). The forecasts indicate that these arrangements will provide
the Group with sufficient funds and facilities to meet its requirements
until January 2004
The directors believe that the Group will be able to obtain additional
funds before January 2004 and therefore it is appropriate that these
financial statements are prepared on the going concern basis.
3. Loss per share
Basic loss per share has been calculated on the loss for the period
divided by the weighted average number of ordinary shares in issue
54,073,037 (2002: 54,055,100).
The warrants and share options outstanding at 31 March are considered to be
anti-dilutive in that their conversion into ordinary shares would not
increase the net loss per share. Consequently, there is no diluted earnings
per share to report for the period.
4. #1,400,000 of the cash balances are deposited as security for #1,400,000 of
bank borrowings and cannot be utilised unless this is repaid or the
security released.
5. The loan notes 2007 are being exchanged for equity in AMT.
6. Reconciliation of operating loss to net cash outflow from operating
activities
31 Mar 2003 31 Mar 2002 30 Sep 2002
#'000 #'000 #'000
Operating loss (2,049) (7,893) (29,104)
for the period
Amortisation - 6,116 25,092
and impairment
of goodwill
Depreciation 116 56 111
and
amortisation of
licences
Decrease in 8 92 114
stocks
Decrease in 130 94 18
debtors
(Decrease) / 58 (562) (285)
increase in
creditors
Net cash (1,737) (2,097) (4,054)
outflow from
operating
activities
Opening cash 2,820 4,875 4,875
balances
Net cash (1,230) (3,873) (3,455)
outflow
Increase in - 1,400 1,400
restricted cash
balances
Closing cash 1,590 2,402 2,820
balances
(including
restricted
deposit)
7. Post balance sheet events
A recommended offer for the whole of the issued share capital of the
Company was received from AMT on 2 May. The offer was declared
unconditional in all respects on 27 May.
On Friday 27 June 2003, the board of Lombard applied to the London Stock
Exchange for cancellation of admission to AIM of its ordinary shares with
effect from 7:00am on Monday 28th July 2003.
8. 2002 Annual Report - Independent auditors' report
The independent auditors' report on the 2002 Annual Report contained a
reference to the fundamental uncertainty in respect of the use of the going
concern basis in the preparation of the accounts.
Contacts:
Tony Canning (Chairman) 0207 710 4500
Rhod Jones (Company Secretary) 01235 841765
This information is provided by RNS
The company news service from the London Stock Exchange
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